If you don’t meet the qualifications to join a credit union that is local to you, you may still be able to participate and do your banking online. You’re eligible to join if you live in the Chicago area (where the credit union has its main office), are an employee with an affiliated company, member of a particular organization, have a family member who is an Alliant member, or make a $10 donation to Foster Care to Success which is a charity that helps those leaving foster care transition out. Some credit unions allow membership when you join a not-for-profit organization or donate a nominal amount of money to a specific cause. Membership is determined by being part of a specific community like a profession, a college, or a membership in an association or organization. How Do You Join a Credit Union?Ĭan anyone join a credit union? Yes, there is a credit union out there for everyone, but not everyone can join every credit union. State-chartered credit unions have private insurance which is not as safe as FDIC or NCUSIF insurance, but 98% of credit unions are federally chartered. government.īoth offer protection up to $250,000 per account. Both are federal insurance backed by the U.S. Federally insured credit unions offer NCUSIF insurance. Money kept in banks is insured by the FDIC. Your money is just as safe in a credit union as it is in a bank. In most cases, your account ends up at a new institution, and you have the same account number and account balance as before. If an institution goes under, some or all of your money may be insured, meaning your funds should be replaced. Okay, we’ve convinced you that storing your money under the mattress is a bad idea so will your money be safe in a bank or a credit union and is one safer than the other?īanks and credit unions can both keep your money safe. That doesn’t mean credit unions give out loans to any member who applies, but the credit union may be willing to take a risk on a long-term customer who doesn’t meet all the standard criteria for a traditional bank loan. If the numbers don’t add up, you won’t get the loan.Īt a credit union, you can have a more personal relationship, and other things apart from a raw set of numbers can be taken into consideration. The level of customer service is higher and more personal at a credit union. If you walk into a bank needing a loan, you’re just a set of numbers. That means that credit unions often offer better interest rates both on checking and savings accounts on loans than do traditional banks.Ĭredit unions charge fewer fees than banks, and there is often no minimum or a very low minimum to open an account. Looking after the bottom line for a credit union means operating in the best interests of their customers/owners. That isn’t illegal, but something doesn’t have to be unlawful to be ethically questionable.Ĭredit unions exist to serve their customers/owners. It can also mean earning money by charging customers outrageous fees. That might be through legitimate means like loaning money and earning interest or illegitimate means like opening fraudulent accounts. Investors own banks and banks have a responsibility to make money for them. But Do They Have Lollipops?Ĭredit unions offer the same core products that banks offer checking and savings accounts, home, auto, and personal loans, debit cards, online bill paying, paper checks, CDs, certified and cashier’s checks, money orders, and safety deposit boxes. Members vote to select the board of directors and for decisions that will affect the credit union.Įach member has an equal vote without regard to how little or how much money he or she has in their account.Ĭurrently, about one-third of Americans belong to a credit union. When you join a credit union, you become part owner just as you own part of a company when you buy its stock. Members are made up of all Department of Defense and Coast Guard active duty, veterans, civilian and contractor employees and family members of all those groups. It started in 1933 with just seven members! is Navy Federal Credit Union with more than s even million members. It was started by and for the employees of the university in 1952 and serves fewer than 1,000 members made up of university employees, alumni, and their family members. Credit unions are started by corporations or organizations to serve their employees or members.Īrkansas AM&N College Federal Credit Union is an example of a small credit union. They exist to serve their members rather than maximize corporate profits.Ĭredit unions range from small, volunteer-run organizations to quite large with thousands of members run by a professional board. Credit unions provide that alternative.Ī credit union is a non-profit money making cooperative where members can borrow from pooled deposits at lower interest rates. After all the recent bad press, it’s not surprising that people want an alternative to traditional banks.
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